Question

What is the purpose of quotas?

A) To ban all imports from a country
B) To restrict the availability of a good from a certain country
C) To limit how much of a good can be imported
D) To keep prices on domestic goods low

Answer 1

c

Step-by-step explanation:

Answer 2

The correct answer is C) To limit how much of a good can be imported.

The purpose of quotas is to limit how much of a good can be imported.

Trade quotas are limits on the number of goods traded between two nations. The custom officials or the department pf Commerce of one nation can establish the import quota but in a modern globalized world, these quotas have repercussions because the other country also establishes quotas as a retribution measure.

That is why some countries formed free trade zones such as the North America Free Trade Agreement (NAFTA), now called USMCA, United States, Mexic, and Canada Agreement.